Amendment status not verified — confirm the current text below against the official source.
The option availed ofby a registtmd person under sub-section '(l)d1afllapsewitheffectfpomthedayonwhichhisw tumoverduringafinancialyearexceedsthelimitspeeified under sub-seetion(l). A taxable person to whom the provisions of sub-section_ (1) apply shall not collect any tax from the recipient on supplies made byhim nor shall he be entitled to any creditofinput tax. Ifthe proper officer has reasous to believe that ataxable person has paid tax under sub-section(1) despite not being eligible, 'suchpersonshall, inadditiontoanytaxthatmaybepayable by him under any other provisions ofthis Act, be liable to a penalty and the' provisions of section 73 or section 74 shall, mutatis mutandis, apply for determination oftax and penalty. (1) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally either absolutely or subject to such conditions as maybe specified therein, goods or services or both of any specified description from the whole or anypartofthetaxleviablethereonwitheffectfi'omsuch date as may be specified in such notification. ' (2) WheretheGomnmtissafiMthatitkmy' hithepubhcmtuwwmdqhmyonthe recommendations of the Council, by special order in ‘eechCasqunderciremcesofanexeeptionalnamre tobestatedinmchorder,exemptfrompaymentoftax anygoodsorservicesorbothonwhichtaxisleviable. (3) 'lhe Government may, if it considers necessary or expedientsotodofor the purpose ofclarifying the scope . or applicability of any ndtification issued under sub— section (1) or order issued under sub-section (2). insult an explanation in such notification or order. as the use ~ may be. by notification at any time within one year of issue of the notification‘under su‘b-section (l) or order under sub-section (2), and every such explanation shall haveefi‘ectasifithadalwaysbeenthepartofthefirst such notification or order, as the case may be. Powertograntexunption fi'omtu. 24 (4) Any notification issued by the Central Government, on ' .. themcdmmmdatbnsoftheCoundLundersub-section ' ' (1) ofsectionllorordflismedunderaab-section (2)01” thesaidsection‘oftheCennalGoodsandServicesTaX/ Act shallbe deemedtobeanotifimtionornsthe case may be, an order issued under this Act. Explanation:—For the purposes of thissection. where an exemption in respect ofanygoods or services orbothfmmfliewholeorpart of the tax leviable thereon has been granted absolutely, the registered person supplying such goods or services orboth shall not collect the tax, in excess ofthe effective rate, on such supplyofgoods or services or both. ' 25 CHAPTER IV TIMEAND VALUE OF SUPPLY ----- supplyasiieterminedintetms oftheptovisionsofthis section. 12, (l) Thehabflitytopaytaxongoodsshallanseattheumeof (2) 'lhetimeofsupplyofgoodsslmllbetheeadierofthe foflowiii'gdateanamelyv (a) thedateOfissueofinvoieebythesuppIierorthelast 'dateonwhidiheisrequired, undersection3i,to issuethe invoicewithrespectto the supply, or , (b) thedateonwhiehthe applianceivesthepayment ~ withrespecttothesupply: Providedthatwherethe suppheroftaxablegoodsreoeivesan amountuptoonethousandrupeesmexcessoftheamomindm in thetaxinvoiee, the time ofsupplyto theextentofsuchests amount shall, at the option ofthe said supplier, bethedate ofissueof inVoiceinrespeetofsuch excess" amount. , Explanation 1.— For the purposes of clauses (a) aiid(b). ‘snpply” shallbedeemedtohavebeenmadetotheextentitiscoveredbythe invoice or,asthecasemaybe, the payment. Explanation 2.~ For the purposes of clause (b), “the date on which the supplier receives the payment” shall be the date on which the paymentisenteredinhisbooksofaccount orthedateonwhichthe paymentiscreditedtohisbankaccounhwhicheveriseaflier. (3) Incaseofmpphesmrespectofwmchtaxupaidorhable tobepaidonrevetsechatgebwathettmeofmpply shaflbetheearhestofthefojlomngdatesmmdr— (a) the dateofthe receiptofgoods. or (b) thedateofpaymentasisentezedinthebooksof account of the recipient or the date on which the paymehtis debitedinhis bank aceount, whichever ‘ is earlier; or . ,(c) thedateimmediatelyfoliowingthirtydaysfi'om the date of issue ofinvoice or any other document. by whatever name called, in lieu thereofby the when Providedthatth it'is notpossibleto determine the time of supphrunderdausetahdause (b)orclause(c), thetirneofsupply shallbethedateofentrymthebooksofacconntofthereupientof supply 'I‘imeofsuppiyofgoods. (4) 26 Incaseofsiipplyofvnndlusbyaqplhthefimeof supplyshallbe— . , (a) the dateofisundechaifthesupplyis identifiable at thatpain;a 1 _(b) "the date ormamm another (5) (6) l3. (1) (2) cases. Whereitisnotpofiblemdmtbtineofupply under the. provisions of subfsedilll(2M (3) or sub—section (4), thetimeoquiyjal— (a) inacasewhereapefiodicdmhsbbefild .bethedateonwhichsuchmisbheMtr (b) inanyothercasebethedauondlidifllemis paid. ‘ 'Dietimeofsupplyto.theextentitreh;smaaddiin mthevalueofmpplybywayofmbfieor penalty for delayed payment of anyconsiderdim shall bethedateonwhichthesupplierreeeivesadudmn invalue; Theliabilitytopaytaxon servicesslnllaxiaeatthetime ofsupplygasdeterminedintermsofthepewiionsof this section. The time ofsiipply ofservices Shallbetheeadbtd'flle following dates, namely:- (a) the date ofi's'siieOf'invoicebythesupplieLKthe invoioeisissuedwithintheperiodprescribednndet sub-seCti'on (2)"of section 31.,or the date of reoe'gt ofpayment; whichever is earlier; or (b) thedateofprofisionofserviceiftheinvoiceisnot issued within the period prescribed under sub- section(2)ofsection 31 orthedateofreceiptof payment, wineheverisearhermr (c) the date on whichtherecipientshowsthereceiptof servicesinhfsbooksofaccburmmaasewherethe provisions ofclause (a) orclause (b)donotappiy: Provided thatwhere the supplier oftaxable service receives an amount upto one thousand rupees in excess ofthe amount indicated inthetaxinvoiee,dietimeofsupplytotheextentofsufliemas amountshalhatflieoptionofthesaidsupplimbefliedateofiasue of invoice relating to such excess amount. Explanation :- For the purposes ofclauses (a) and (b)- § w ‘thesupplyshallbed‘eemedtohivebeenmidemflle extentitiscovfiedbflheinvoiceormsflteaéemybe, thepayment; ‘ ‘ ' Trmeofsuyplyof 27 (ii) “the date , of receipt of payment” shah :he the date on whichthe payment is entered in thebooks ofaccount of the supplier or the date on which thepayment is credited to his bank account, whichever is earlier. . (3) In case ofsupplies in respect ofwhich tax is paid othable to be paid on reverse charge basis, the time ofsupply shall be the earlier ofthe following dates, namely:— a, A (a) the date ofpayment as entered in the books ofaccount of the recipient or the date on which thepayment is debited in his bank account, whichever is earlier; or (b) the date immediately following sixty days from the date , of issue of invoice or any other document. by whatever name called,in lien thereofby the supplier: mmmmmaafimmmmsm of supply under clause-(a) ordause (b), the time ofsupplyshall be the dateofentryinthebooksofawauntoftheredpimofnpply: Provided further .‘that' in case of supply by assodated enterprises, where the supplier of service is located outside India, the time ofsupply shall be the date ofentry in the books ofaccount ofthe recipient ofsupplyor the dateofpayment, whichever is earlier. (4) In case ofsupply ofVouchers, by a supplier, the tiine ofsupply shall bg— I . . - (a) the date ofissue ofvoucher, ifthe supply is identifiable at that point; or (b) thedateoftedemption ofvoucher, in allothercases; (5) Whereitisnotpossibletodeterminethetimeofsupplyof services inthemannerspeeifiedin sub-section (2), subsection (3) or sub-section (4).the timeofsupply shall— (a)' inacasewhereaperiodicalreturnhastobefiMbethe , date onwhich suchtemmistobe-filedior (b) inanyothermsebethedateonwhichthetaxispaid. (6) The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which thesupplies receives such addition in’value.‘ l4. Notwithstanding anything contained in section 12 orsection 13, the timeofsupplygw‘here thereisachangein therateoftax in respect ofgoods or services or both, shall be determined in the following manner. namelyz- - (a) incasethegoodsorservicesorbothhavebeensupplied beforethechangeinrate oftan— . ' Changeinnteoftu inmspectofsupplyof goodsorseryicea. 28 (i) wheretheinvoice for the samehasbeenissued and «thepaymentisalso receivedatterthe changein rate often the time of supply shall b‘e‘the date of receipt of payment or the date ’of issue of invoice, whicheveriseadierwr (ii) where the invoice has been issued prior to the dnngeinrateoftaxbutpaymentisreceivedafter thednngeinrateoftanthetimeofsupplyshallbe thedie ofissue ofinvoice;or (iii) vduethepaymenthasbeenreceivedbeforethe mmrateoftagbuttheinvoiceforthesame isismedafierthechangeinrateoftanthetimeof suwlyshallbethedateofreceiptofpayment; (b) inasethegobdsorservicesorbothhavebeensupplied d'uthediangeinrateoftan— , (i) wherethepaymentisreoeivedafterthediangein rateoftaxbuttheinvoicehasbeenissuedpriorto thednngeinrateoftaxthetimedsupplystnllbe “thedded'teoe'qtofpaymeImG ' 5.x. (wwwinvoieehsbeenismedmdpaymentis - receivedbeixethedmgefinmtedmfietime ofsupplyshallbethedateofreceiptofpaymetfior _ m.t-dateofissueofinvoicewhidieveriseuhe'nor (iii) where the invoicehasbeenissnedafterthechange inrateoftaxbutthepaymentisxeoeivedbeforeflie changemrateoftaxthetimeofsupplyshall‘beflie date ofissue ofinvoice: ' Provided that the date ofreceipt ofpayment shall be the date of credit in the bank account if such crediti’in the bank'éaccount is - after four working days from the date éfchange in the rate oftax. Explanation:- For the purposes fit"this section; “the due ofreceiptof payment’shaflbe the date on which the payment is entered in the books of accounts ofthe supplier or the date on which the payment is credited to titsbank accounts whichever is earlier.